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Gas Prices Dip … Will They Fall Further?

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GOOD NEWS AT THE PUMP COULD GET BETTER …

By FITSNEWS  ||  For once, some good news …

According to the AAA daily fuel gauge, motorists in South Carolina are currently paying an average of $2.96 per gallon of regular unleaded gasoline – cheaper than any other state save Missouri.   And the cost is likely to continue coming down.

Nationally, the average per gallon price is $3.18 – down from $3.27 a week ago and from $3.39 a month ago.  That’s the cheapest gas has been in more than four years – and fifty cents less than its most recent peak in late July.

According to GasBuddy.com, more than 43,000 U.S. service stations – or one-third of the stations it tracks – are currently selling a gallon of unleaded gasoline for less than $3.00 (hat tip to MarketWatch‘s Silvia Ascarelli for uncovering that nugget).

Obviously this is good news … although we’d be remiss if we didn’t point out South Carolinians continue to pay a disproportionately high percentage of their income on fuel costs (given our chronically low income levels).

Also we would reiterate lower gas prices are not a good excuse to raise the state’s gas tax … which is unnecessary if our leaders would simply take the time to stop prioritizing political projects at the expense of long-overdue maintenance.

Gas prices tend to drop in autumn as travel decreases, although this year’s decline has been more pronounced.

What’s going on?  Imagine this: An increase in supply (thanks in no small part to a domestic boom) – and a reduction in demand.  Oh, and increased competition.  So yeah … the free market, in other words.

Domestic production of oil is currently running at 8.7 million barrels a day – a million more barrels per day than last year and the highest level in more than a quarter century.  That’s helped … as has a reduced demand for oil in Europe (which is about to enter another recession) and Asia (which is increasingly relying on other energy sources).

What are prices like at your local filling station?  Tell us your experience in the comments section below …

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